On May 14, Coinbase, a leading US Bitcoin and altcoin exchange, experienced a major system-wide outage, leaving users in the dark and sending shockwaves through the crypto market. The outage, which began in the morning, prevented users from accessing their accounts or making transactions, leading to frustration and significant financial losses.

Coinbase quickly acknowledged the outage via social media, assuring users that their funds were safe. However, reports emerged of substantial financial losses due to the outage, with one user reportedly losing approximately $1.5 million. This is not an isolated incident for Coinbase, which experienced temporary outages in February during a surge in crypto trading activity.

The market's reaction to the outage is notable, with some linking the outages to increasing trading volume as a potential bullish signal for cryptocurrency prices. However, Bitcoin's price experienced a drop of approximately $1,000 coinciding with the reported Coinbase issues. The asset dropped from $62,700 to $61,450 within minutes, and BTC experienced a $2,000 drop from its peak of $63,400 the previous day.

Coinbase is currently working to resolve the outage, providing updates via social media channels. However, the incident serves as a reminder of the growing pains associated with a rapidly evolving financial system like cryptocurrency. As the crypto market matures, ensuring the stability and reliability of exchanges will be critical in boosting user confidence and fostering wider adoption.